NASDAQ, potential double top + Elliot wave analysis
After making new all-time highs with the recent bull run, technical side indicates that the price momentum is running out of steam.
Divergence on RSI from overbought zone indicates a potential double top.
Also, today’s candle forms a shooting star, but we need to see the close of the day.
Taking Elliot wave into account, this could be the end of the 5th wave, which would imply we are due for a correction, further adding to the probability of a sell off.
This index is dependent on the performance of the tech companies, so technical signs can still be negated by fundamental news from giants like the GAFA group (Google, Apple, Facebook, Amazon).
First potential entry could be on the break of the trend line, it already has 3 touches.
Happy Trading!
Divergence on RSI from overbought zone indicates a potential double top.
Also, today’s candle forms a shooting star, but we need to see the close of the day.
Taking Elliot wave into account, this could be the end of the 5th wave, which would imply we are due for a correction, further adding to the probability of a sell off.
This index is dependent on the performance of the tech companies, so technical signs can still be negated by fundamental news from giants like the GAFA group (Google, Apple, Facebook, Amazon).
First potential entry could be on the break of the trend line, it already has 3 touches.
Happy Trading!
Comment:
Last candle did form a shooting star, on other broker platforms that show today's prices, it made a gap lower and opened below the small trend line.